Texas Children's Hospital sees operating income drop 66% in FY 2017

Texas Children's Hospital in Houston saw revenues increase in fiscal year 2017, but the 767-bed hospital's operating income declined year over year.

Texas Children's reported revenues of $3.6 billion in fiscal year 2017, up 18.7 percent from revenues of $3 billion in fiscal year 2016, according to recently released bondholder documents. The hospital's patient service revenue was nearly flat year over year at $1.9 billion, but its premium revenue grew 53 percent year over year to $1.5 billion.

However, the hospital's operating expenses outpaced revenue growth in fiscal year 2017. Texas Children's recorded expenses of $3.5 billion in the most recent fiscal year, up 20.1 percent from $2.9 billion the year prior.

The hospital ended fiscal year 2017 with operating income of $15.6 million, down 66 percent from $45.6 million in fiscal year 2016.

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